A board of directors is responsible for providing oversight of a business and its policies regarding governance, and offers support for the strategy formulated by the management. It also ensures that the business operates lawfully and in the best interests of shareholders and other stakeholders. The board may be made from a mix of outsiders and insiders, each elected for a specific period of time. The ideal board is well-rounded, diverse and includes a broad range of skills, experiences, and backgrounds. They should reflect the company’s essential values and show an unwavering commitment to the mission.
In addition to providing leadership and expertise in governance boards must be willing to take risks and take difficult decisions. They should also demonstrate a deep understanding and ability to work as a team. They must be able to articulate the strategic vision and direction for their company and know how to formulate and implement the plan of action.
Boards must be prepared to react quickly to changes in the social and business environment. They must be proactive when it comes to the risk and opportunity, as well as managing talent and corporate finance.
A great way to establish a solid board of directors is to create an applicant database of qualified candidates and inviting them to apply for jobs immediately when openings are created. This can be as simple as posting an advertisement for a job on LinkedIn or distributing an email announcement.